Week Ahead: 26-30 August

Monday August 26

Public Holiday: UK markets closed

Tuesday August 27

Interims: Antofagasta, British Polythene Industries, Bunzl, FBD, Kentz, Petrofac, Regus, UTV Media

EGMs: Coalfield Resources

Wednesday August 28

Interims: 888, APR Energy, Chime Communications, G4S, Grafton, Johnston Press, Kenmare Resources, Paddy Power, Polymetal International, Randall & Quilter, Seadrill

Final: Mattioli Woods

Trading statement: Chemring

AGMs: Daejan, Development Securities, Iomart

Economics: CBI reported sales

Investors should expect upbeat half year results from Aim-traded Randall & Quilter (RQIH), a specialist in managing the run-off of insurance companies and Lloyd's of London syndicates that have stopped underwriting new contracts.

At the time of the annual meeting the company expected a strong first half showing from its Insurance Investments operation, driven by the run-off syndicate participations and higher than anticipated investment income. Expect positive news from the Underwriting Management business, too. This unit has been scaling up and should now be benefiting from higher commissions and a larger contribution from fee income in the second half.

Having raised £24m in the placing earlier this year, the company has made several acquisitions including a number of insurance debt positions. This underpins the cashflow needed to sustain the company’s progressive dividend policy: the board paid out 8.3p a share in 2012, and so far this year has returned 5p a share. And with analysts at Numis looking for full-year EPS of 13.4p, there is scope for an increase in the payout. Trading on a PE ratio of 9.5, and offering a historic yield of 6.5 per cent, the shares are attractively priced.

Thursday August 29

Interims: Admiral, Aseana Properties, Bumi, Cape, Churchill China, Evraz, Hansteen, Hardy Oil & Gas, HellermannTyton, Hunting, International Public Partnerships, Irish Continental, Lombard Medical Technologies, Macfarlane, Melrose, Molins, Oxford Biomedica, Partnership Assurance, Petropavlovsk, Playtech, Salamander Energy, Serco, Soco, Unite, Vislink, WPP, Xaar

Final: Hays

Specialist engineer Molins (MLIN) may be working in a low growth industry but it offers scope for medium-term growth. Currently around 60 per cent of sales come from the tobacco industry, where the company specialises in improving the effectiveness of existing customer plant, monitoring and testing product quality and conducting the analysis of cigarette smoke. This is the high-end part of the business, accounting for a quarter of revenues, and a likely source of some exciting news if, as expected, Molins' tobacco testing business, Arista Laboratories, receives a boost in demand for its services resulting from tighter US regulations that are expected to be implemented by the Food & Drug Administration (FDA).

The US regulator has now heard representations from cigarette manufacturers in advance of issuing guidance on testing requirements with a view to tightening up the testing regime for harmful compounds found in tobacco smoke. The new regulations were scheduled to be published in April, but have been delayed. True, the timescale and nature of the FDA testing regime is uncertain, but what is not in doubt is that Molins is well-placed to capitalise on the opportunities, especially as Arista has a significant logistical and marketing advantage to attract new business for its onshore US testing services.

Ahead of the half year results this week, analysts at brokerage Canaccord Genuity are forecasting Molins will grow revenues by around 2 per cent to £95m and raise operating profits by 10 per cent to £5.5m in 2013. A higher tax charge means underlying EPS is expected to be flat at 22p. However, this is unlikely to hold back the dividend which is expected to rise to 5.7p a share, having been raised from 5.3p to 5.5p last year. On this basis, the shares trade on 7.5 times forward earnings and yield around 3.5 per cent. That is a pretty attractive rating, which becomes even more compelling once you consider that Molins had net funds of £7.4m, worth 36p a share, at the December year-end. Strip this cash out from the share price and the multiple drops to a bargain basement six times earnings. For good measure, the shares trade on a modest 10 per cent premium to net asset value.

Friday August 30

Interims: Bwin.Party Digital Entertainment, Computacenter, Charles Taylor, Chesnara, Frontline, Goldenport, Headlam, Lavendon, Marshalls, Perform, Polyus Gold International, Restaurant Group, Shaft Sinkers, Tyman

Final: Haynes Publishing

Trading statement: Stagecoach

AGMs: Advanced Computer Software, Essar Energy, Stagecoach, Sweett

Economics: GfK consumer confidence (August), Net consumer credit, Net lending secured on dwellings, Mortgage approvals, M4 money supply

Shares going ex-dividend on August 28

The ex-dividend date is the first day on which it is no longer possible to buy the shares and qualify for the dividend. Ex-days are almost always a Wednesday. The record date is usually two days after the ex-date. The payment day is the day on which the funds are transferred to shareholders.